Property Market Sees Uplift in Buyer Interest and Sales:

According to Zoopla, the real estate market has experienced a resurgence in the early weeks of the year, with buyer demand up 11% compared to the previous year. This rebound is attributed to the drop in mortgage rates and a build-up of demand from the latter half of 2023, as noted by Zoopla's Executive Director of Research, Richard Donnell.

The positive trend continued into the first half of February, with London leading the charge in buyer activity, followed by the North East and North West regions.

London's property market, which has seen relatively modest growth compared to the rest of the UK over the past seven years, is showing signs of revival. The average price of a flat in the capital has only increased by 13% since 2016, in stark contrast to the national average house price increase of 33%, and even more significant rises in regions like Wales.

The increase in the number of sales being agreed is a strong indicator of a healthier market, allowing more individuals to achieve their home-moving goals. The availability of nearly a fifth more homes for sale than the previous year has expanded buyer choices and facilitated more agreed sales, thereby attracting additional sellers to the market. New listings have surged by 10% from a year ago, marking the highest rate of new homes coming to the market since 2020, particularly in the East of England, the South West, and the North East.

Sales agreements have seen an upswing across all UK regions, with London, the South East, and Yorkshire and Humber leading with increases of more than 10%. The average time to agree on a sale in 2023 was 34 days, a slowdown from the pandemic-driven market of 2022. The variance in sales periods across different regions reflects the impact of housing affordability and mortgage rates on market dynamics, especially in areas with higher property prices like London and the South East.

Zoopla anticipates continued growth in market activity in the coming months, citing a more balanced dynamic between sellers and buyers. Despite the positive trajectory, there remains a need for realistic pricing in the face of increased property choices and potential for negotiation. This environment underscores the importance of setting the right asking price and consulting local agents to gauge market demand, particularly for unique or unusual properties.

Written by Veera Josey, 22nd February 2024

Source: Zoopla